INCOME TAX ACT, 1961

Section 131

Income-tax authorities - Discovery, production of evidence, etc. - Whether AO was justified in asking assessee to be present for enquiry for unlimited period till the time he obtains permission from him -

AO issued notice under section 148 for reopening assessment in case of assessee. In furtherance of the notice under section 148, the AO issued summons to the assessee under section 131, asking him to be present on particular day to give evidence and to produce personally the books of account or other documents specified therein and not to depart until he grants permission to do so. Assessee submitted that the action of the AO directing him not to depart until he grants permission to do so, was a patent violation of the Fundamental Rights guaranteed under Part-III of the Constitution of India. He further submitted that section 131 did not enable the AO to issue such directions. Held: A perusal of summons under section 131 showed that apart from asking the assessee to be present on a particular day, the AO also directed the assessee not to depart from the premises till he grants permission to do so, which was highly unreasonable. Though there was no infirmity in asking the assessee to be present for enquiry, however, there was no justification on the part of the AO in asking the assessee to be present for unlimited period. Accordingly, the assessee was directed to co-operate with the enquiry initiated by the AO and to be present before the officer concerned on the day on which the officer asked the assessee to be present, till 7.00 p.m., or any other time earlier thereto specified by the officer concerned.

REFERRED :

FAVOUR : In Direction issued

A.Y. :

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